§ Special provisions as respects settlements made before the twenty-seventh day of April, nineteen hundred and thirty-eight.
§ 1. Subject to the provisions of this Part of this Schedule, in the case of a settlement made before the twenty-seventh day of April, nineteen hundred and thirty-eight, Subsection (1) of the relative Section shall not, by reason only of the provisions of paragraph (a) thereof, apply to sums payable by the settlor by virtue or in consequence of any provision of the settlement in a year to which this Part of this Schedule applies, if—
- (a) at the expiration of three months from the date of the passing of this Act—
- (i) no person has or can have any such power as is referred to in the said paragraph (a) and
- (ii) the settlor has not received and is not entitled to receive any consideration in respect of the release or disclaimer of any such power; or
- (b) the like annual payments have been payable by the settlor by virtue or in consequence of that provision of the settlement in each of the seven years of the assessment ending with a year to which this Part of this Schedule applies; or
- (c) before the expiration of three months from the date of the passing of this Act—
- (i) the settlement, or the provision by virtue or in consequence whereof the annual payments are payable, has been revoked; and
- (ii) a new settlement has been made by the settlor by virtue or in consequence whereof the settlor is liable to make the like annual payments and cannot, except in the event of his death, cease to he liable to make those payments before the expiration of six years from the date when the first of the annual payments payable by virtue or in consequence of the revoked settlement became payable:
§ Provided that where any income arising under the settlement in a year to which this Part of this Schedule applies has not been distributed, the foregoing provisions of this paragraph shall have effect as if there were substituted for the reference to sums payable by the settlor in that year a reference to the amount, if any, by which the sums so payable in that year exceed the income arising under the settlement in that year which has not been distributed.
§ 2. Subject to the provisions of this Part of this Schedule, in the case of a settlement made before the twenty-seventh day of April, nineteen hundred and thirty-eight, income arising under the settlement in any year to which this Part of this Schedule applies which would, but for this paragraph, be treated by virtue of Sub-section (2) of the relative Section as the income of the settlor 1187 and not as the income of any other person, shall not be so treated or, in a case where any income arising under the settlement in that year has not been distributed, shall not be so treated to the extent that it exceeds the amount of income arising under the settlement in that year which has not been distributed if, at the expiration of three months from the date of the passing of this Act—
- (a) no person has or can have any such power as is referred to in the said Subsection (2); and
- (b) the settlor has not received and is not entitled to receive any consideration in respect of the release or disclaimer of any such power.
§ 3. The foregoing provisions of this Part of this Schedule shall not apply to any settlement if, in any year to which this Part of this Schedule applies, any capital sum within the meaning of Section thirty-seven of this Act has been paid to the settler directly or indirectly by the trustees of the settlement or any body corporate connected with the settlement in that year.
§ 4. Notwithstanding that the payments payable by virtue or in consequence of any such new settlement as is referred to in sub-paragraph (c) (ii) of paragraph 1 of this Part of this Schedule are payble to or applicable for the benefit of another person for a period which cannot exceed six years from the date when the settlement was made, they shall not be treated as the income of the settler by virtue of paragraph (b) of Sub-section (1) of Section twenty of the Finance Act, 1922.
§ 5. Paragraphs r and 2 of this Part of this Schedule shall not apply to any income which would have been treated as the income of the settlor for any purpose by virtue of paragraph (a) of Sub-section (1) of Section twenty of the Finance Act, 1922, but for the provisions of this Act relating to that paragraph.
§ 6. In this Part of this Schedule references to the settlor, except where that expression first occurs in paragraph 2, include references to the wife or husband of the settlor.
§ 7. The years to which this Part of this Schedule applies are the year 1937–38 and the year 1938–39.—[Sir J. Simon.]